Operational Improvement Plan

12 Months Ended

Dec. 31, 2021

Operational Improvement Plan [Abstract]

15. Operational Improvement Plan

During the third quarter of 2020, the Company approved an operational improvement plan (Operational Improvement Plan) to consolidate manufacturing facilities and improve efficiencies within the Company. As part of the Operational Improvement Plan, the Company combined its New Jersey cosmetics manufacturing facility in the Personal Care product line of the Color segment into its existing Color segment facility in Missouri. In addition, the Company is centralizing certain Flavors & Extracts segment support functions in Europe into one location. In the Asia Pacific segment, the Company incurred costs in connection with the elimination of certain selling and administrative positions.

During the second quarter of 2021, the Company received cash proceeds, net of associated expenses, in connection with the termination of a New Jersey office and laboratory space lease. The terminated lease was originally executed in November 2020 as part of the Operational Improvement Plan; however, the landlord for the property requested to terminate the lease prior to the end of its term and compensated the Company as part of a negotiated resolution for that termination. The Company reports all costs and income associated with the Operational Improvement Plan in Corporate & Other.

The following table summarizes the Operational Improvement Plan income and expenses recorded in Selling and Administrative Expenses by segment for the year ended December 31, 2021:

(In thousands)	Flavors & Extracts			Color			Asia Pacific			Consolidated
Employee separation	$	(123	)	$	(8	)	$	(351	)	$	(482	)
Other income⁽¹⁾		-			(3,624	)		-			(3,624	)
Other costs⁽²⁾		-			2,207			4			2,211
Total	$	(123	)	$	(1,425	)	$	(347	)	$	(1,895	)

⁽¹⁾

Other income includes cash received for the early termination of a lease less associated expenses.

⁽²⁾

Other costs include professional services, accelerated depreciation, and other related costs.

The following table summarizes the Operational Improvement Plan expenses by segment for the year ended December 31, 2020:

(In thousands)	Flavors & Extracts		Color		Asia Pacific		Consolidated
Employee separation	$	352	$	1,749	$	589	$	2,690
Other costs⁽¹⁾		-		640		9		649
Total	$	352	$	2,389	$	598	$	3,339

⁽¹⁾

Other costs include professional services, accelerated depreciation, and other related costs.

The Company recorded the Operational Improvement Plan expenses for the year ended December 31, 2020, as follows:

(In thousands)	Selling and Administrative Expenses		Cost of Products Sold		Consolidated
Employee separation	$	2,690	$	-	$	2,690
Other costs⁽¹⁾		614		35		649
Total	$	3,304	$	35	$	3,339

⁽¹⁾

Other costs include professional services, accelerated depreciation, and other related costs.

As of December 31, 2021 and 2020, accrued liabilities in Other Accrued Expenses totaled $0.8 million and $2.2 million, respectively, related to this plan.